The Rising Threat of Fake Business Accounts

The banking and financial services industry will see an increase in scams and frauds perpetrated through fake businesses, incentivizing bad actors to continue creating these fraudulent entities, said Mary Ann Miller, a fraud and cybercrime executive adviser with Prove.

“I don’t think they’re going to stop with their consumer generation of fake accounts, but I think that the prevalence and the increase in creating fake business accounts will continue to rise,” said Miller.

“What’s even more complex about this type of fraud is when someone’s identity is wrapped up into a synthetic identity and then on top of that is used to open up a fake business,” she said.

In this interview with Information Security Media Group, Miller discussed:

• The importance of strengthening identity verification in the business sector;
• Strategies to improve “know your business” requirements;
• How the U.S. Small Business Administration helps to stop fraud.